3 Stocks Pushing The Internet Industry Lower

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

The Internet industry as a whole closed the day up 0.3% versus the S&P 500, which was down 0.1%. Laggards within the Internet industry included Professional Diversity Network ( IPDN), down 5.5%, Selectica ( SLTC), down 1.8%, ChinaNet Online Holdings ( CNET), down 3.0%, BroadVision ( BVSN), down 1.6% and Taomee Holdings ( TAOM), down 1.8%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today:

ChinaNet Online Holdings ( CNET) is one of the companies that pushed the Internet industry lower today. ChinaNet Online Holdings was down $0.02 (3.0%) to $0.81 on light volume. Throughout the day, 9,400 shares of ChinaNet Online Holdings exchanged hands as compared to its average daily volume of 52,100 shares. The stock ranged in price between $0.81-$0.84 after having opened the day at $0.81 as compared to the previous trading day's close of $0.84.

ChinaNet Online Holdings, Inc., through its subsidiaries, provides business-to-businesses Internet services for small and medium enterprises (SMEs) sales networks in the People's Republic of China. ChinaNet Online Holdings has a market cap of $19.2 million and is part of the technology sector. Shares are down 0.6% year-to-date as of the close of trading on Wednesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings rates ChinaNet Online Holdings as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good.

Highlights from TheStreet Ratings analysis on CNET go as follows:

  • Compared to its closing price of one year ago, CNET's share price has jumped by 33.33%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • CNET's debt-to-equity ratio is very low at 0.02 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, CNET has a quick ratio of 1.75, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The revenue fell significantly faster than the industry average of 14.6%. Since the same quarter one year prior, revenues fell by 27.3%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. When compared to other companies in the Media industry and the overall market, CHINANET ONLINE HOLDINGS's return on equity is below that of both the industry average and the S&P 500.
  • CHINANET ONLINE HOLDINGS reported flat earnings per share in the most recent quarter. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, CHINANET ONLINE HOLDINGS reported lower earnings of $0.13 versus $0.15 in the prior year.

You can view the full analysis from the report here: ChinaNet Online Holdings Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

If you liked this article you might like

3 Stocks Pushing The Media Industry Higher

4 Stocks Under $10 Making Big Moves

ChinaNet Online (CNET) Stock Is Up Today After Announcing Agreement With Baidu

ChinaNet Online Holdings (CNET) Stock Rises Today After Business Direct 3.0 Launch

ChinaNet Online Holdings (CNET) Stock Continues to Rise Today on China's Economic Growth